I am glad to hear that you are finally taking a proactive approach to reach out to the company and I really hope he takes your call today. It all boils down to one thing here, their CBD Initiative. They can put out all the PR's they want, but none of them will have a positive effect on the share price, unless it is about their CBD Initiative and in particular their first CBD product, Nulief.
Everyone knows how passionate I have been about their CBD Initiative and what it could mean for this company. I have supported them all through the long process of developing an actual high quality CBD product to take to market. They were taking all the right steps to ensure a long lasting success in the medical marijuana industry, but now at the most critical point, they have slowed to a crawl. Why? I like you, thought it was due to the legal issues, but after much research I found that not to be the issue, so I went straight to the company to see what was the exact issue that was causing them to slow their roll out of Nulief. The responses I received back made me extremely angry, because of how this mismanaged this most important step. It seems that just months prior to the launch, they ponied up a sizeable amount of cash to promote their Bikini Ready brand via TV commercials, leaving them with limited resources to launch Nulief to the retail market. It is unfathomable to me how management could make such a critical error at such a critical time. Not once did they ever claim the delay was due to legal issues, but rather the lack of resources.
It wasn't until I learned that Mr. James purchased the Bikini Ready and Slim Trim brands from Jim Kras, was I able to connect the dots of what caused this situation. Kras was part of the deal and how it came about that he was employed by Inergetics. I also couldn't help but to think that he must also be receiving royalties for these brands that he sold to Inergetics. Looking back, everything became crystal clear that Kras was more interested in promoting his own two brands than getting excited about the possibilities for their CBD Initiative. That conflict of interest caused Kras to convince Mr. James to shift much of the company funds into a Bikini Ready promotion that included expensive TV advertising. Their main objective was to greatly increase the Bikini Ready sales to give them enough cashflow to fund their Nulief launch. The problem was that the expensive BR promotion didn't create near enough sales to make it work as planned and depleted much of the resources to be used for a national Nulief roll out.
Like I said, I did a lot of digging and had some pretty intense conversations with management about this situation. It escalated even further when I got extremely upset when I was told that their limited resources was the main reason for a slow roll out that meant starting with select dispensaries and gradually expanding from there as resources permitted. That strategy was completely unacceptable for me, as it left the door wide open for someone else to step in and be first to market to take away their huge advantage in this market. I took it a step further by utilizing my long successful career at P&G, to give examples of how important it was to be first to market and what it meant for the brand. I took this proactive approach to open their eyes and to try and get them to rethink their current strategy for Nulief, before it was too late. What I got in return was a defensive posture that was filled with excuses and denial that resulted in a very unfriendly exchange of words and closed the door to further communication on the subject.
Needless to say, I was very disappointed and dismayed with how this ended. I seriously doubt that my open relationship with the company is still intact after this exchange, due to my unyielding point of view that is supported by numerous examples and facts. The way it stands now is that I have drawn a line in the sand of what they must do to keep my support and the support from many of their shareholders. They need to pool all their resources to concentrate on the huge opportunity they have with Nulief. I left them with no choice, but to change their approach with Nulief for retail distribution. Mr. James needs to understand the conflict of interest that exist with Mr. Kras and how it has affected the company in a negative way and that he needs to step to ensure it doesn't interfere again with their biggest and best opportunity for immediate success.
The market is only interested in their CBD Initiative until they can witness some very notable successes with their other brands that will provide the type of positive cash flow that CBD can generate very quickly. If they won't listen and understand what the market wants, they have no chance of turning this around. They got the market excited with the Nulief launch and they can't afford to backoff now, even if it means securing additional financing that doesn't have the most favorable terms. They have to get Nulief launched at retail and they need to do it now! They can't afford to lose everything they have worked for to get to this point. They just have too much invested to take a slow approach at this point. It is as clear as the nose on your face and I have to believe they must know this now.
They must work on securing some retail distribution for Nulief right away and making an announcement or sharing a new retail marketing and distribution plan for Nulief. Until this happens the share price will continue to flounder and remain in jeopardy of falling to all time new lows. News regarding their other brands will be completely ignored by the market, as proven in the past. Give the market what it wants and the market will reward you, don't and the market will punish you. I remain hopeful that management will see the light and make the right decision for Nulief and their CBD Initiative. It's not too late to turn things around, but it has to happen now. Cheers!
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